Internet advertisers are cutting back on spending in the first two weeks of September, according to Nielsen Media Research.
According to Nielsen///Net Ratings, advertisers spent $163 million on image ads for the week ending Sept. 10, a 6.3 percent drop from the previous week and the second consecutive drop in as many weeks.
Nielsen said that the numbers shows a weakness in demand for online advertising that may begin to extend throughout the industry. Total spending on banner ads also dropped for the week ending Aug. 27, the period traditionally with the highest revenue in the third quarter. Automotive ads, a staple and one of the largest single Web ad categories, dipped 25 percent.
Shares of Internet giant Google were down more than $5 to $398.47 in early trading and shares of Yahoo Inc. were down 27 cents to $25.50, on news of the Sunnyvale company lowering its earnings expectations.